India’s green growth and transition in 2025 will be shaped by its commitment to sustainable development, economic growth and addressing climate change and materiality issues. As one of the world’s fastest-growing economies, India struggles to balance economic growth with environmental sustainability. In this context, integrating clean technologies, carbon markets, and green policies is not just about economic expansion but also about addressing global environmental justice.

Carbon Markets And Climate Action
India is increasingly focusing on carbon markets as a climate change mitigation strategy. It is expected to make significant strides in creating opportunities for businesses to offset emissions and invest in projects that reduce carbon. Technology is central to driving emissions reductions and creating a transparent carbon trading system.

A key feature here includes market integration. India will likely integrate with global carbon markets, such as the European Union Emissions Trading System (EU ETS) or the Carbon Pricing Leadership Coalition.

India is also expected to develop a national carbon market targeting key polluting industries like energy, cement, steel and heavy manufacturing. Such a system would create financial incentives for emissions reduction, encourage cleaner technologies and reduce environmental footprint.

Also, government, academic institutions and industry partnerships are key to furthering renewable energy. For cheaper storage options, battery storage is one collaboration area that will help make the solution economically viable.

Green Economy And Technological Integration
India’s transition to a green economy is crucial in decoupling economic growth from environmental degradation. This transformation focuses on low-carbon, resource-efficient, and socially inclusive development, where technology plays a critical role in achieving sustainable goals and fostering peace through equitable development.

Central to India’s green economy is its expanding renewable energy sector. By 2030, India aims to achieve 500 GW of renewable energy capacity, focusing on solar and wind power. This growth will significantly reduce reliance on coal and fossil fuels, contributing to cleaner industrial development and greater energy security.

The green economy will also create millions of jobs in renewable energy, energy efficiency, electric vehicles, waste management, and green construction. These job opportunities will contribute to inclusive growth, particularly in rural and underserved regions, ensuring that India’s transition benefits all sections of society.

India will boost food security and promote long-term agricultural sustainability by adopting sustainable farming practices, such as water conservation, organic farming, and climate-resilient crops.

Indian Economic Growth, Sustainability And Global Responsibility
India’s economy is projected to grow at around 6-7 per cent annually by 2025, but a responsible approach to environmental sustainability must accompany this growth. As part of this process, India’s industrial sector will focus on cleaner production methods, supported by green technologies and innovations that promote energy efficiency and sustainable practices.

India’s goal of decoupling economic growth from carbon emissions means increasing GDP without a proportional rise in carbon output. The green economy will help achieve this by prioritising renewable energy, energy efficiency and sustainable agriculture.

A green economy also promises to foster inclusive growth by creating sustainable livelihoods in rural areas, ensuring economic benefits reach all population segments.

India’s industrial transition will involve adopting innovative green technologies supported by financial incentives and government regulations. This shift will enable industries to reduce their carbon footprint and increase their contributions to sustainable economic growth.

Global Climate Commitments
India’s green growth efforts will align with its international climate commitments, especially those made under the Paris Agreement. One of the most significant recent developments on the global stage is the creation of the loss and damage fund at COP-29. This fund aims to support vulnerable nations disproportionately affected by climate change—often countries in the global south like India.

India’s target of 500 GW of renewable energy by 2030 will be critical to reducing its carbon emissions and advancing its green economy. Increased investments in clean energy technologies and green infrastructure will support this.

As part of its commitment to climate action, India may introduce stricter sustainability regulations to encourage industries to adopt cleaner technologies and reduce emissions. This could include carbon reporting standards and updated environmental protection laws.

Technology & COP-29’s Loss And Damage Fund
The COP-29 loss and damage fund represents a global recognition of the financial and technological support needed by developing nations facing the impacts of climate change. By 2025, India will likely benefit from this fund, particularly through technology transfers and funding for climate adaptation projects. This will bolster India’s renewable energy development, sustainable agriculture and resilience-building efforts.

Technology is essential in effectively implementing the loss and damage fund. For instance, digital tools, satellite imagery and AI-driven models can assist in disaster risk management, providing early warnings and enabling quicker recovery after climate disasters. Furthermore, technologies like blockchain can enhance transparency in fund distribution, ensuring that the most vulnerable communities receive the aid they need. The adoption of technology is essential for Indian companies and policymakers.

India’s green growth and transition by 2025 will be defined by the acceleration of carbon markets, the development of a green economy, and the creating of sustainable jobs. The country’s economic goals are intricately linked with its environmental commitments, including its role in global initiatives like COP-29’s loss and damage fund. Technology will be at the heart of India’s green transition, enabling cleaner energy production, smarter resource management, and a more inclusive, sustainable economy. As India grows economically, its leadership in climate action, underpinned by innovative technologies, will set an example for global peace, equity, and environmental responsibility.

Author- Surya Valluri is the Chief Sustainability Officer of Grasim Industries.